
TSE:GEI
This summary was created by AI, based on 10 opinions in the last 12 months.
Gibson Energy (GEI-T) has garnered mostly positive reviews from analysts who appreciate its robust position in the crude oil infrastructure sector, owning a significant portion of Western Canada's oil transit through its terminals and pipelines. The company's business model, anchored by numerous take-or-pay contracts, provides stability in cash flows irrespective of oil price fluctuations, promoting growth estimates of around 7% annually. While the valuation appears to be on the higher end of its segment, its attractive dividend yield of 5.82% appeals to income-focused investors. Experts acknowledge the stock's fair value status, indicating a balance between potential growth and current pricing, although some suggest that it may not outperform other midstream competitors. Overall, analysts feel comfortable holding GEI-T for its yield and stability in the current energy landscape.
Top income idea. Storage. Since oil sands aren't growing as much, growth rate has come down but cashflow remains very strong, which gives them flexibility. Reducing debt, buying back shares. Good metrics for debt and payout ratio. Dividend safe, grows 5% a year. Yield is 6.96%.
(Analysts’ price target is $25.14)Simple, essential business. Tanks outside oil sands that put oil into pipelines. Amazing part of the energy complex. Has decided not to grow, therefore no market pressure from increasing capex. Will maintain profit margin through a difficult, inflationary time and compound those income streams. Great way to enhance a portfolio. Yield is 6.24%.
(Analysts’ price target is $25.64)Similar to Keyera. A smaller infrastructure and transportation sector player. The sector is being rapidly consolidated. The play right now is to look at the next acquisition. Could be okay for a smaller position or for those with more risk appetite.
He likes it since it is defensive and quite cheap with a great dividend of 7%. Doesn't have a great EPS though.